Financial Aid 101for College Costs

2015 - 16

Kilgore College

Will Massey

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We will talk about:

• Federal student aid

• State student aid

• Institutional Scholarships

• Scholarships from other sources

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We will answer:

• What is financial aid?• Who can get it?• How much can I get?• How do I apply?• What happens next?• Where can I get more info?

AID: Four Types from Four Sources GRANTS

Department of Education (Federal) State of Texas

LOANSDepartment of Education (Federal)

EMPLOYMENTCollege Work Study (Federal)Institutional Positions/Fellowships

SCHOLARSHIPSState of Texas or InstitutionOutside Agencies or Donors

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Who can get federal student aid?

• U.S. citizen or permanent resident• High school graduate/GED holder• Eligible degree/certificate program• Valid Social Security number• Males registered for Selective Service• Satisfactory academic progress

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How much federal student aid can I get?

In general, depends on your financial need.• Financial need determined by Expected

Family Contribution (EFC) and cost of attendance (COA)

• EFC comes from what you report on FAFSA• COA is tuition, fees, room and board,

transportation, etc.

COA – EFC = financial need

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How much federal student aid can I get?

Example: first-year student in 2015-16Maximum amounts allowed: • Federal Pell Grant: [$5,775]• Direct Subsidized and Unsubsidized Loans: $5,500 total• Federal Perkins Loan: Not available at KC• Federal Supplemental Educational Opportunity Grant:

[School will determine amount per student - $500/Sem]• Federal Work-Study: depends on funds available at

school• Direct PLUS Loan (for parents): COA minus other aid

received

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How much state aid can I get?

• TEOG - $1368 per year (2015-16)

• TPEG – up to $1000 per Year (15-16)

• College for all Texans

• www.studentaid.ed.gov/scholarship

• Contact school’s financial aid office

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How do I apply for aid?

• Federal student aid: fill out Free Application for Federal Student Aid (FAFSA) at www.fafsa.gov

• State and School aid: contact financial aid office at schools you are considering

• Outside Scholarships: contact donors / websites for specific informationExamples: Civic Clubs, Churches, Businesses, Charitable Organizations

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What happens next?

• Each school will tell you how much aid you can get at that school.

• Before you are awarded, the school may ask for additional documents in a process called Verification.

• Provide the information asap, so it will not delay processing your aid.

Institutional Verification Confirms accuracy of FAFSA information

Application selected at random by CPS, but school is

required to verify if selected

Often occurs if information is incomplete or questionable

School may request documents necessary to complete the

verification process

Prepare copies for the school,

as originals will not be returned

Common Documents BE PREPARED TO FURNISH:

Tax Return Transcripts and W-2(s) – Prior yearUntaxed income on tax return, such as

Tax Exempt Interest IncomeUntaxed IRA distributions, annuity paymentsDeductible IRA or Keogh paymentsHomebuyer or Making Work Pay tax credits

Child Support Received or PaidUnemployment BenefitsWelfare Benefits (Food Stamps)Workers’ Compensation Identity InformationOfficial High School Transcript

After verification is complete, the counselor checks the Expected Family Contribution shown on the Fafsa

The EFC is a factor which uses the Fafsa data and a federal formula to rank students

It can change, based on results of Verification Factors considered in EFC formula:

Parent and student prior year incomeUS Income Tax paidNumber of family members in householdNumber of students attending collegeFamily assets

What happens after verification?

So what is the next step in processing student aid? After the EFC is determined, the aid counselor sets up a

budget for the student, also known as a “cost of attendance”: Definition of Cost of Attendance:

Tuition and Fees of particular institutionBooks and SuppliesRoom and Board, (dorm, apartment, or at home)TransportationPersonal/Miscellaneous ExpensesChild CareDisability expenses

Definition of Unmet Need

Cost of Attendance (COA)

– Expected Family Contribution (EFC)

= Financial Need

School A: Community College $12,000 - Expected Family Contribution (EFC) 1,000 Unmet Need $ 11,000

School B: State University $25,000 - Expected Family Contribution (EFC) 1,000 Unmet Need $24,000

School C: Private University $45,000 -Expected Family Contribution (EFC) 1,000 Unmet Need $44,000

Comparing COA to Equal EFC

Evaluating Aid Packages Most expensive is not always best choice

Compare college cost to career earnings

Compare earnings to accrued 5-yr debt

How much is offered in renewal scholarships?

Is the COA of the school offset by aid?

Balance of aid offered

What percentage is offered of grant aid?Loan aid? Institutional scholarships?

Common Errors INCOMPLETE APPLICATIONS - Most errors are caused by

the student providing inaccurate or incomplete data on FAFSA (make a copy)

Not meeting required deadlines

Not submitting all required documents

No Admission Application and Official Transcripts on file in Registrar’s Office

Not returning or accepting Award Letter terms by stated deadline (paper or electronic)

Satisfactory Academic Progress Academic Progress evaluated by school on a

semester or annual basis Students must show progress by meeting

academic standards, usually a min 2.0 GPA and a set percentage of classes to continue to receive federal financial aid

State and Donor Scholarships require higher minimum standards for renewal

Pay attention to changes in requirements! Loss of one fund can result in dollars owed from

You! Be informed & don’t lose your aid!!

World Wide Web

ed.gov/studentaidfafsa.ed.govcollegeforalltexans.commappingyourfuture.orgstudentloans.govfinaid.org

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Where can I get more info?

• www.studentaid.ed.gov – Information about aid programs– Free scholarship search– Free college search

• 1-800-4-FED-AID– Information about aid programs – Help with the FAFSA

Pay Attention! Review each school’s catalogs/website for information and

application procedures.

Accurately complete and submit correct forms and respond promptly to requests.

Know each school’s deadlines be an early bird for best choice of funds!

Check SAP policies for renewal andmake sure you meet them!

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Thanks for coming

Contact information:

Name• Mr. Will Massey, Financial Aid Counselor, Kilgore College•Phone: (903) 983 - 8641 •Email: wmassey@Kilgore.edu